Charts & technicals
What is Candlestick chart?
Also called: Candle, Japanese candlestick
Hinglish mein padhein: Candlestick chart kya hota hai?
A candlestick shows a period's open, high, low and close. The body spans open to close; the wicks show the high and low.
A green (or hollow) candle closed above its open; a red candle closed below it. Long wicks show prices that were rejected during the period.
Patterns such as the hammer, engulfing and doji describe the tug-of-war between buyers and sellers, and are more meaningful at key support or resistance levels.
Related terms
- DojiA doji is a candle whose open and close are almost equal, signalling indecision between buyers and sellers.
- Engulfing patternAn engulfing pattern is two candles where the second body completely covers the first, in the opposite colour — a common reversal signal.
- HammerA hammer is a candle with a small body near the top and a long lower wick, appearing after a decline — a possible bullish reversal.
- OHLCOHLC stands for open, high, low and close — the four prices that describe a stock's trading in any period, from one minute to one year.